Technical & Fundamental Oil Reports Specialists

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Targets have been hit and held – Adopt a neutral stance until next leg clear

Published Friday, October 3rd, 2014

The contracts are in a relentless down trend. All targets lower have, for the moment, been hit and held. Shorts should have been covered. There is a lack of technical harmony this morning – everything is not saying lower – and it’s advised to be very careful. The stochastics have flipped positive on all contracts bar WTI and RBOB, and WTI’s is trying to turn. This is curious given the price action. The 100 month MAs have been hit and held on Brent and Gasoil – these are key supports. The down trend has been very strong and yesterday may have been a culmination of maximum pain. This is evidenced by the 5 day gap theory – in a trend the price action likes to be close to the 5 day MA – say within 30/50c of it. Yesterday the 5 was over $3.00 above the price action. This almost never lasts long and is a sign of extreme maximum pain, however temporary. It has now closed the gap to 80c! It is advised to be flat and patient at the moment – the lack of technical harmony is a concern, and all targets have been hit and held. WTI hit and then closed over its target to 89.84 and did not make it down to the 100 monther at 86.50.

to read the rest of the report, please click here 

Posted by Robin Bieber